FTSE 100 Extends Losses On Risk-off Sentiment

U.K. stocks fell on Tuesday as a slew of negative catalysts such as a pronounced drop in the yuan, escalating protests in Hong Kong and surprise primary election results in Argentina dented investors' appetite for risk.

In economic releases, the U.K. unemployment rate increased in three months to June while average earnings grew at the fastest pace in eleven years, data from the Office for National Statistics showed.

The jobless rate increased by 0.1 percentage points sequentially to 3.9 percent in three months to June. Unemployment rose by 31,000 to 1.33 million.

In three months to June, employment increased by 115,000 to reach a record 32.81 million. But the employment rate remained unchanged at 76.1 percent.

The benchmark FTSE 100 was down 41 points or 0.57 percent at 7,185 after declining 0.4 percent in the previous session.

Tour operator TUI rallied 2 percent as it stuck to its earnings guidance for the full year.